Joe Biden wants to tax the rich significantly higher

D.He is the President of the United States Joe Biden According to locals, it plans to significantly increase taxes for the wealthy to invest in sectors such as education and child care. Among others, those familiar with the plans told Reuters on Thursday that the capital gains tax on citizens with annual incomes of more than $ 1 million would be doubled to 39.6 percent as part of the “American Family Plan.” The Bloomberg News Agency also reported, citing informed circles.

With the existing, additional taxation, the associated tax burden could reach 43.4 percent. Presidential Office Spokesman Jen Saki Declined to comment on the details of the project. It will be delivered next week, he said. Wall Street responded with significant discounts to reports and cryptocurrencies also went down.

Biden’s family plan was previously announced to be worth a trillion dollars. Locals say the Democrats will present their proposal to Congress before the speech, which is expected on Wednesday. Biden has already submitted a $ 2.3 trillion infrastructure plan that Congress is currently considering. Republicans reject it. It was hoped that they too would be able to appeal against the family plan in its original form.

“This is a long way from project to implementation”

With only the smallest possible majority for Democrats in the Senate, analysts on Thursday were initially skeptical that Biden’s tax plans would become law in this form. “It’s a long way to go from project to project,” said Charles Lemonites, Valueworks ’portfolio manager. Paul Knolt of Kingsview Investment Management sold a short-term reflex reaction on the U.S. stock market on Thursday. “Every time we talk about higher taxes or capital gains, everyone gets excited,” he said. Then they sell first and then think about it. The question is where investors want to put their money. Many will end up buying shares again.